The record date for the Rights Offering will be February 19, 2010. Each registered holder of the Company's common shares on the record date will receive one right for each common share held. Four rights plus the subscription price of C$0.05 or ZAR0.35 (the "Subscription Price") will be required to subscribe for each common share under the Rights Offering. The rights may be exercised commencing February 24, 2010 and will expire at 5:00 p.m. (Toronto time) in Canada and 12h00 midday p.m. (South African time) in South Africa on March 19, 2010 (the "Expiry Time"). Holders of rights who exercise their rights in full will be entitled to purchase, at the Subscription Price, any common shares that are not otherwise subscribed for under the Rights Offering prior to the Expiry Time on a pro rata basis. Shareholders are directed to the Rights Offering Circular for further details on how to subscribe for common shares. Computershare Investor Services Inc. is the subscription agent in Canada, and Computershare Investor Services (Pty) Limited is the subscription agent in South Africa.

The Rights Offering is being made to holders of common shares in all of the provinces and territories of Canada, and in South Africa. Rights Offering materials will not be mailed to holders of common shares resident outside of Canada and South Africa ("Ineligible Shareholders"). Ineligible Shareholders will be sent a letter advising them that their rights certificates will be issued to and held by the subscription agent, which will hold those rights as agent for the benefit of all Ineligible Shareholders. The letter will outline the terms on which the Company may accept subscriptions from certain Ineligible Shareholders, other than holders resident in the United States.

The rights and common shares issuable upon the exercise of the rights will not be registered under the U.S. Securities Act and may not be offered or sold in the United States of America or any of its territories or possessions or to U.S. Persons. Accordingly, subscriptions will not be accepted from any security holder or transferee who is a U.S. Person or resident in the United States of America, its territories or possessions.

Rockwell will accept subscriptions from Ineligible Shareholders, other than holders resident in the United States, if they satisfy the subscription agent and Rockwell that such offering to and subscription by such holder or transferee is lawful and in compliance with all securities and other laws applicable in the jurisdiction where such holder or transferee is resident. An Ineligible Shareholder in a jurisdiction other than the United States who meets these requirements and wishes to exercise rights must complete and deliver a request for exempt purchaser status, which will be provided in the materials sent to such shareholder.

After March 12, 2010 the subscription agent will attempt, on a commercially reasonable basis, to sell the rights of Ineligible Shareholders (other than those shareholders from whom Rockwell accepts subscriptions) over the facilities of the Toronto Stock Exchange. The subscription agent will mail cheques representing the net proceeds, without interest, from such sales.

As previously announced, the Company has entered into a stand-by purchase agreement pursuant to which the stand-by purchaser, Daboll Consultants Limited, will purchase at C$0.065 per share, 47.5 million common shares not otherwise purchased pursuant to the Rights Offering. If less than 47.5 million common shares are available for purchase by the stand-by purchaser in connection with its obligations related to the Rights Offering, the stand-by purchaser has agreed to purchase by way of private placement that many common shares which, when added to the number of common shares purchased by it in connection with its obligations related to the Rights Offering, would total 47.5 million common shares. The stand-by purchaser has the right to purchase up to a total of 53 million common shares through a combination of the Rights Offering and private placement. The obligations of the stand-by purchaser under stand-by purchase agreement are subject to certain conditions to closing.

The proceeds of the Rights Offering are planned to supplement funding available to implement further production efficiencies at currently producing operations and to modify and re-commission the Wouterspan plant, currently on care and maintenance, to a low cost high volume facility.

For further information, please contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.

John Bristow
President and CEO

For further information, please contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.

John Bristow
President and CEO

In its December 2, 2009 news release, the Company announced its intentions to raise approximately $12.5 million (all currency figures are in Canadian dollars) in a combination of private financings and a shareholder rights offering. At that time, the Company estimated that approximately 67 million rights shares would be offered based on an issued share capital of 238 million shares as well as an additional, approximately 30 million private placement shares which were expected to be issued to raise approximately $2 million before commencement of the rights offering.

In the Company's January 6, 2010 news release, the Company announced completion of $7.4 million of the private financings and also projected an overall increase of $2.2 million to a targeted total raise of about $14.7 million. As a consequence of the sequencing of the placements and the international aspects of the rights offering, the latter was delayed approximately 8 weeks from the original timetable. The Company has now closed the private placement portion of the financing and has issued approximately 132.8 million shares at $0.065, thereby raising $8.6 million to date. Accordingly, the Company currently has 370.8 million shares outstanding and the rights offering will offer approximately 92.7 million shares, representing an increase of 25 million shares or $1.25 million over the December 2, 2009 estimate. Forty-seven (47) million shares of the rights offering are the subject of a stand-by completion guarantee and, in the event that the rights offering is fully subscribed by existing shareholders, approximately $4.6 million will have been raised plus the stand-by guarantor will purchase a further $3.4 million of shares at $0.065, subject to TSX acceptance, making for a final recapitalization of between $13.2 million and $16.6 million.

President and CEO John Bristow commented, "We are most encouraged that investor interest and support for Rockwell has proved far greater than we originally projected which we attribute to strengthening of rough diamond prices, improving financial market conditions, and strong support and enthusiasm for our prospects and plans. We have achieved a good mix of support from existing and new strategic investors who will contribute to the success of our going-forward growth and expansion strategy."

For further details on Rockwell, please visit the Company's website at www.rockwelldiamonds.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.

John Bristow
President and CEO

1. Three large stones recovered in September/early October: a 122-carat rounded octahedral stone of light yellow Cape colour with a number of inclusions; a 120-carat irregular rounded and frosted stone which appears to be of good white colour and clarity, and a 105-carat high quality rounded, white stone of excellent clarity at Saxendrift.

2. Three high quality coloured diamond recovered in October: a 30.54 carat salmon-pink stone and two intense fancy yellow stones of 35.54 and 36.32 carats were recovered at Saxendrift.

3. Three greater than 50-carat stones recovered in November - a 60.8 carat rounded off-white stone at Saxendrift and a 52.4 carat light yellow octahedral stone of excellent clarity at Holpan.

1. Average price received during the three months ended November 30, 2009 was US$1,269 per carat, a 48% increase over the US$855 per carat in the previous three month period.

1. The average operating cash cost for the Company's three operations over the nine months in fiscal 2010 is US$2.73 per tonne. The average cost for all the operations including rehabilitation, hire purchase payments and royalties is US$4.44 per tonne.

1. 7,963.28 (2008: 5,981.25) carats were produced at the Holpan/Klipdam and Saxendrift operations. 5.3 carats were recovered from the Wouterspan final recovery plant during auditing and reprocessing of concentrate material.

2. 9,409.94 carats were sold at an average price of US$1,268.83 per carat.

3. Sales of $12.8 million, together with other sales of $0.09 million, resulted in $12.9 million in revenue.

4. Cost of sales of totalled $7.1 million and amortization totalled $3.3 million.

5. An operating profit of $2.5 million was realized for the period.

6. Net general and administrative expenses amounted to $1.6 million, interest amounted to $0.3 million and taxation was $0.05 million

7. A profit of $ 0.5 million or 0.002 cents per share was realized for the period.

1. 19,920.44 (2008: 16,558.09) carats were produced from operations at Holpan/Klipdam, Wouterspan and Saxendrift.

2. 20,646.13 carats were sold at an average price of US$969.17 per carat.

3. Tender sales of $21.9 million, plus beneficiation profit share of US$0.5 million and other sales of $0.3 million, resulted in total revenue of $22.7 million.

4. Cost of sales of $16.7 million and amortization of $8.3 million. As a result, an operating loss of $2.3 million was realized for the period.

5. Net general and administrative expenses amounted to $4.8 million, and net interest expenses were $1.1 million, offset by a net tax recovery of $1.6 million. As a result a loss of $6.1 million or $0.026 cents per share was realized for the period.

Some of these large diamonds were produced prior to the short break for the holiday season, and others were recovered since operational start-up on January 8, 2010. They are:

• 52.40 carat clean light fancy yellow diamond from Holpan;
  
  
• 60.52 carat light yellow octahedral diamond from Saxendrift;
  
  
• 74.99 carat clean white irregular blocky stone from Saxendrift;
  
  
• 54.23 carat light yellow broken macle stone with inclusions from Saxendrift; and
  
  
• 60.51 light yellow rounded flat stone with oxide coating and minor inclusions from Saxendrift.

The Saxendrift mine is located adjacent to the Middle Orange River approximately 160 kilometers southwest of Kimberley, and the Holpan mine is located approximately 40 kilometers north of Kimberley, in the Northern Cape Province of South Africa. The four diamonds recovered at Saxendrift were mined from basal gravel and Rooikoppie deposits, whereas the Holpan stone was likely mined from paleochannel deposits.

President and CEO John Bristow stated "Our Saxendrift mine continues to impress with its regular yield of large and exceptional stones, highlighting the remarkable geological setting of this, and other, Middle Orange River deposits. This is also the setting for the Wouterspan deposit and reinforces our decision to implement the planning and re-commissioning of operations there which yields a similar diamond population. Aside from heavy rain at Holpan and Klipdam on the 7th and 8th of January which impacted processing and earth moving operations, we are pleased to report a smooth start-up in 2010. Our management and operations team are fully focused on ensuring a year of good production and growth for Rockwell."

For further details on Rockwell Diamonds Inc., please visit the Company's website at ww.rockwelldiamonds.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.

John Bristow
President and CEO